Frontier Airlines to charge some customers for carry-ons, drinks

By Kristen Leigh Painter, Digital First Media

Thursday, May 2, 2013

“To fee or not to fee?” It is the question nagging every airline these days, and Frontier took a huge step toward a fee-based model Wednesday when it announced some customers will be charged for beverages and overhead-bin space.

The changes are another step in the airline’s effort at steering more passengers to directly book air travel on its website. And while it may upset some passengers, air travelers can probably expect add-on costs from nearly every airline in the future.

The Denver-based carrier will begin charging for carry-on bags by the summer for customers who buy the Basic fare — which is the cheapest bracket only offered on third-party websites.

Meanwhile, every ticket purchased on FlyFrontier.com will include a free carry-on, including the Economy fare — the cheapest fare available on the airline’s website.

A carry-on bag is considered larger than a “personal item.” The airline allows every passenger — no matter what price bracket or site used — a free personal item if it fits under the seat.

“Frontier’s most loyal customers have made it very clear that finding overhead-bin space for carry-on bags has become unacceptably difficult,” said Frontier in a news release. “Frontier guarantees that customers will get the best value at FlyFrontier.com with our Best Fare Guarantee.”

Customers who do purchase through outside websites, such as Travelocity and Hotwire, will pay between $25 and $100 for a carry-on bag. The cheaper rates apply to customers who check in for their flight on Frontier’s website.

“You can’t please everyone all the time. This will probably alienate some customers,” said George Hamlin, an airline analyst. “They are not looking for the frequent fliers who take a lot of flights at a cheapest level, but they are looking for a frequent revenue provider, which from a business standpoint is an intelligent approach.”

Frontier, which still tries to cater more to the business traveler than other low-cost carriers do, hopes these changes will benefit its frequent fliers and status members.

“With this change, we are ensuring that our most loyal customers — Ascent and Summit level members of EarlyReturns, those who book Economy, Classic and Classic Plus tickets, including all customers who book through FlyFrontier.com — will have more space onboard the aircraft for their carry-on bags,” said Frontier CEO David Siegel in a news release. “As we unbundle our product further, we ensure those customers who want the absolute lowest fares can always find them at FlyFrontier.com.”

“Unbundling” is an industrywide trend that allows passengers the choice of paying for only those services and amenities that they choose.

Kyle Ewing is a Frontier Summit member who won’t be directly impacted by these changes but is still concerned about them.

“Where it does impact me is when I travel with friends or co-workers or a family member and they charge for things like bags, it makes them groan,” Ewing said.

He and his buddies are going to St. Louis this weekend on Frontier for a bachelor party, but he said that may not happen in the future.

“For something like drinks or bags, you could probably get us to Southwest (Airlines) pretty easily,” Ewing said.

Other customers had stronger reactions to the changes.

“(I) most likely will be canceling my Frontier credit card I carry with them,” said Andy Kepler said in an e-mail to The Denver Post. “Their moves just seem to make zero sense to keep customers. ... I will now move away from Frontier more than ever.”

Frontier was not the first to implement changes in its fees. Most airline analysts agree that unbundling is here to stay as airlines struggle to turn a profit without extreme hikes to ticket prices.

“(Airline) fares are virtually unchanged from this time last year, so I think fees will continue to be a part of everyone’s approach,” said Robert Polk, CEO of Polk Corporate Travel Management.

A Frontier spokeswoman was unable to say whether corporate travel bookings would be impacted, but Polk — whose company deals specifically with booking travel for companies — said Frontier’s changes would negatively impact his business.

And while Frontier customers may throw their arms up in exasperation, other airlines are sneaking in new fees or changing the language of its costs.

Spirit Airlines is perhaps the most infamous U.S. carrier to base its business model on the … la carte service fees. Spirit is an ultra-low-cost carrier, and Frontier said in its Wednesday news release that these fees are a part of its “transformation into an ultra-low-cost carrier.”

But Frontier’s added fees are nowhere near Spirit’s laundry list of costs. Even Spirit’s club members must pay for a carry-on bag while Frontier is trying to pad the system to favor its frequent fliers.

And it’s not just the low-cost airlines. The traditional U.S. legacy carriers — United Airlines, Delta Air Lines, US Airways and American Airlines — are increasing fees.

Just this week, United increased the fee for customers changing their itinerary from $150 to $200. US Airways and Delta quickly followed suit.

Meanwhile the highest penalty that Frontier charges to change a ticket is half as much — $100 — and only applies to its Basic ticket holders. Economy and Classic customers pay $50 and Classic Plus can change their tickets for free.

Even Southwest Airlines, beloved for its lack of penalties, recently announced it no longer allows “no-show” passengers credit for missed flights.

All customers who are status members or purchase Classic or Classic Plus tickets will be able to fly both their checked luggage and their carry-ons for free. Beginning in July, the carrier will also begin charging customers with Economy or Basic fares about $2 for onboard beverages, but they will still be free for Ascent and Summit level members.

Those who purchase Basic or Economy tickets can fly a checked bag for $20 if they buy it on the website. But, if these same ticketholders decide to wait until they reach the airport, the cost will bump up to $25 for the first bag.

Frontier is also changing its frequent-flier program’s accrual rate on July 1 for passengers who purchase a Basic fare ticket. Instead of accruing 50 percent of the miles flown, those passengers will only accrue 25 percent. Economy, Classic and Classic Plus ticket-holders will continue to receive 100, 125 and 150 percent, respectively, of the miles flown.

The changes apply for any tickets purchased after Wednesday’s announcement for travel beginning July 1.

Kristen Leigh Painter can be reached at 303-954-1638 or . Follow her at .